SGX Nifty Indicates Opening Above 12,000; Adani Power, Berger Paints, and Gujarat Gas to Report Today

Market Preview

At 8:00am IST, the SGX Nifty Futures was trading at 12,060, compared with Nifty’s close of 11,908 yesterday.

Market status: Rally Attempt

Global stock markets: Dow 30, +1.3%; S&P, +2.2%; Nasdaq, +3.9%; Nikkei, +1.2%; Kospi, +1.6%; Hang Seng, +1.9%

Nifty remained volatile throughout yesterday's session as we wait the outcome of U.S. election results. After a gap-down opening, the index traded toward 11,920. In the second half, it witnessed volatility and made a day’s low of 11,756 but immediately recovered to close the trading session near the day's high, holding decent gains. Volume was slightly lower, compared with the last session. Nifty regained its 21-DMA and closed 0.6% above it. In the broader market, Midcap was up 0.7%, while the Smallcap index closed 0.1% lower.

On the sectoral front, barring Nifty Realty, Nifty Fin Service, and Nifty Metal, all other sectors closed in the green. Nifty Pharma (+2.2%) gained the most for the day, followed by Nifty IT, which advanced 1.8%. Of 2,213 stocks traded, 949 advanced, 868 declined, and the rest remained unchanged.

Looking forward, we prefer to see a follow-through day before shifting the market to a Confirmed Uptrend. A follow-through day is a solid up session, generally a 1.5% or higher gain, with volume being higher than the previous day. We will continue to monitor general conditions and the behavior of leading stocks, looking for evidence that a real move is commencing. During this time, one should look for stocks with quality fundamentals, RS line trending higher, and breaking out from consolidation areas.

Key News

Adani Power (Nse), Astrazeneca Pharma India, Berger Paints India, Gujarat Gas, Fine Organic Inds, and Inox Leisure (Nse) will report their Q2 FY21 results today.

Lupin (Nse) reported Q2 FY21 results yesterday after market hours. Revenue from operations increased 5.9% y/y to Rs 2,990.1 crore, while PAT surged 161.5% to Rs 360.4 crore.

Pidilite Industries(Nse) reported Q2 FY21 results yesterday after market hours. Consolidated net sales increased 3% y/y to Rs 1,857 crore. EBITDA before non-operating income grew 39%. PAT increased 10% to Rs 357 crore.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 8%; Rally Attempt, 16%; Uptrend Under Pressure, 68%; Downtrend, 8%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 25%; Rally Attempt, 21%; Uptrend Under Pressure, 50%; Downtrend, 4%.